Disclaimer 免責聲明

The views & opinions expressed are the dealers' own and they do not represent the views of UOBKH. The content is written in their personal capacity and is in no way related or associated to UOBKH. Please read disclaimer page here.

Wednesday, June 21, 2017

Malaysia Corporate Deal picks | Choo Bee /Dialog /Ekovest /Hume Industries /SYF Resources /Destini

My view:

Malaysia-Event-Driven-Corporate-Deals-picks:
Theme: Potential-Beneficiaries -of-M&A/Asset Monetisation/Bonus Issue

1.        UONKH research reckons that Malaysia having a slew of recent M&As i.e. Geely/DRB-Hicom; RHB/AMMB merger; is likely to see more such deals running up to 2H17/FY18.

2.        Positive value-accretive deals are explored. Based on our compiled list of possible deals, three types of deals are identified – M&A, asset monetisation,and capital management.





UOB Kay Hian Research issued a report dated today on the above topic. Please contact us for the full research analyst report.

Thanks & Regards
Any expression of trading idea found on this website is for sharing only and does not constitute an invitation to trade or investment advice. Please read disclaimer page here.

Monday, June 19, 2017

Singapore Healthcare: Prefer HMI /Spore O&G (SOG) as Singapore slows & Malaysia grows

My view:

S'pore-Healthcare-picks:

Theme: S'pore-slows-Malaysia-grows

1.        UOBKH research has MARKET WEIGHT on S'pore Healthcare.

2.        They expect medical tourism growth in Singapore to decelerate going forward, as competitive pressure from neighbouring ASEAN countries such as Malaysia intensifies.

3.        Our top BUY-pick:        
        a.        HMI:         A Malaysia-based hospital operator, which is gaining grounds in terms of quality and service offerings, but still at a fraction of the bill sizes in Singapore. DCF-based target price of S$0.83. We are upbeat on the group's growth prospects, driven by its focus on high-revenue intensity cases and positive medical tourism outlook in Malaysia. HMI is trading at a FY18F PE of 29x, a 28% discount to peers (41x), which we do not think is justified given the strong EPS growth forecast of HMI (3-year FY17-19F EPS CAGR of 32% vs peers of 18%).

        b.        SOG:        PE-based target price of S$0.74. SOG remains a compelling mid-cap healthcare stock, with an attractive dividend yield of 3-4% and strong EPS growth (3-year EPS CAGR of 20%). With paediatrics service commencing in 2H17, this will help to complement the group's existing offerings in women's health.

4.        HOLD calls:
        a.        While we remain positive on the long-term growth strategy of RMG and IHH, we believe mid- to near-term growth outlook will be hampered by elevated expansion cost.





UOB Kay Hian Research issued a report dated today on the above topic. Please contact us for the full research analyst report.

Thanks & Regards

Any expression of trading idea found on this website is for sharing only and does not constitute an invitation to trade or investment advice. Please read disclaimer page here.

Thursday, June 15, 2017

ISDN SP | Conviction BUY +60% upside ahead

My view:

S'pore-Event-Driven-pick:

TOP-BUY:
1.        ISDN (ISDN SP) Px/Tgt SGD0.22/0.35 +60% upside

Theme:                CONVICTION BUY-for-+60%-upside-ahead

1.        I recommend Investors to CONVICTION BUY ISDN SP because:

        a.        PEG:                                0.2x           (PE: 6x vs EPS growth: 40%)
        b.        PB:                                0.5x
        c.        Dividend Yield:                4% pa
        d.        Cheap & undervalued:         PE 6x compared to its precision engineering peers at 11x
        e.        Net cash:                        30% of its Market Cap
        f.        Near Term Catalysts:
                i.                                Solid 2Q17 results
                ii.                                Benefit from China's OBOR (One Belt One Road) (partnership with local China Railway companies)
                iii.                                Accretive M&A

        g.        UOBKH Small Cap Track Record:
                i.        >+50% post-initiation:        citn sp/kshh sp/value sp/rston sp/cao sp/smg sp/ip sp/dfil sp/mtec sp/mm2 sp
                ii.        Underperformed:                dll sp

2.        UOBKH research initiates coverage with BUY at 35cts target.

UOB Kay Hian Research issued a report dated today on the above topic. Please contact us for the full research analyst report.

Thanks & Regards
Any expression of trading idea found on this website is for sharing only and does not constitute an invitation to trade or investment advice. Please read disclaimer page here.

Monday, June 05, 2017

Malaysia Alpha Picks in Jun | Ekovest EKO /Bumi Armada BAB /Kerjaya Prospek KPG

My view:

Mal-Aipha-picks:

MY PICK:

1. Destini (DSTN MK) Px/Tgt MYR0.71/0.84                                                

My view:

1. Share price performance has broadly been UP over last one month as follows:


                (MYR)                                Dec                Jan                Feb                Mar                Apr                May                Jun                %
        a.        DSTN MK                        0.68                0.64                0.72                0.76                0.75                0.74                0.71                -5                
       
        a.        EKO MK                        0.88                0.95                1.12                1.31                1.45                1.17                1.20                +3                        


        b.        KPG MK                        -                -                -                -                2.62                3.04                3.24                +7
        c.        RHB MK                        -                -                -                -                5.17                5.44                5.19                +5


        d.        VSI MK                        -                -                -                -                1.73                2.01                2.01                0
        e.        YTLP MK                        -                -                -                -                1.52                1.50                1.51                +1


        f.        GTB MK                        -                -                -                -                -                5.44                5.69                +5


        g.        BAB MK                        -                -                -                -                -                -                0.78                0


UOB Kay Hian Research issued a report dated today on the above topic. Please contact us for the full research analyst report.

Thanks & Regards

Any expression of trading idea found on this website is for sharing only and does not constitute an invitation to trade or investment advice. Please read disclaimer page here.

Singapore Alpha Picks in Jun | Alliance Mineral (AMS SP) /China Aviation (CAO SP) /Citic Envirotech (CEL SP)

My view:

S'pore-Aipha-picks:

MY PICK:
1.        Alliance Mineral (AMS SP)                Px/Tgt SGD0.35/na;        

2.        Noble (NOBL SP)                        Participate on any SHORT SQUEEZE  (Don't position on the off-chance of potential bankruptcy)        

My view:
1.        Share price performance has broadly been UP over last one month as follows:

                (SGD)                                Dec                Jan                Feb                Mar                Apr                May                Jun                %
        a.        AMS SP                        -                -                -                -                -                0.32                0.35                +10
        b.        NOBL SP                        -                -                -                -                -                -                0.35                0
                                                       
        a.        CAO SP                        1.38                1.48                1.51                1.49                1.52                1.62                1.71                +6

        b.        CEL SP                                -                -                -                -                0.83                0.77                0.77                0
        c.        SATS SP                        -                -                -                -                4.87                5.12                5.25                +8; Take-Profit

        d.        CCT SP                                -                -                -                -                -                1.63                1.66                +2

        e.        MTEC SP                        -                -                -                -                -                -                0.96                0
        f.        SIA SP                        -                -                -                -                -                -                10.03                0


UOB Kay Hian Research issued a report dated today on the above topic. Please contact us for the full research analyst report.

Thanks & Regards
Any expression of trading idea found on this website is for sharing only and does not constitute an invitation to trade or investment advice. Please read disclaimer page here.

Thursday, June 01, 2017

Bumi Armada (BAB MK) | Continue to BUY despite recent +50% upside

My view:

Mal-O&G-Pick:

Bumi Armada (BAB MK) Px/Tgt MYR0.74/0.92  (+25%)

Theme: Continue-BUY-despite-recent +50%-upside

1.        I continue to be upbeat on BAB MK post +50% upside from Dec 16 low because:
        a.        Our MYR0.92 SOTP implied 0.9x P/B (post Claire impairment) and 15x 2017F P/E.
        b.        Long-term investors should look beyond the weak 1Q17 as the company had already recognised Armada Claire impairments
        c.        The delivery of the four FPSO projects should see the stock re-rate from its current 0.7x P/B valuation.
        d.        These projects will provide cash flow visibility once they start on finance lease income, and may double the group's profit base from 2017
     
2.        UOBKH research is upbeat on BAB MK prospects. He maintains BUY and SOTP target price of RM0.92. 1Q17 core results mark the start of the group's turnaround, with maiden earnings from FPSO Olombendo and FSU Malta. The JV FPSO for Madura has achieved first gas. We believe investors' concern over Kraken (with potentially an additional small penalty) will be removed upon first oil by end-Jun 17. Kraken and Madura will help the group achieve a stronger 2H17. Also, we see a possibility of extension for FPSO TGT1.



UOB Kay Hian Research issued a report dated today on the above topic. Please contact us for the full research analyst report.

Thanks & Regards

Any expression of trading idea found on this website is for sharing only and does not constitute an invitation to trade or investment advice. Please read disclaimer page here.

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